The US Securities and Exchange Commission has announced that software enabling user interfaces for crypto securities transactions through individual wallets will not require registration and regulation as a broker. This stance is reflected in the agency's recent staff statements on cryptocurrency, which aim to provide clarity and allow the industry to move forward in the absence of permanent rules.
The SEC staff has outlined a checklist for interface creators to avoid regulatory classification, including not soliciting investors for specific transactions and refraining from providing commentary on potential execution routes. However, if an interface offers financing, investment recommendations, handles user assets, takes orders, or executes transactions, it will fall under regulatory scrutiny.
The agency is providing these views as an interim measure while considering various regulatory issues related to crypto asset securities activities. Under the current administration, the SEC has shifted its stance to support the development of crypto-friendly regulations, with SEC Chairman Paul Atkins working on proposing wide-ranging rules. In the meantime, the agency is developing interim measures to provide greater certainty, while the Senate works on the Clarity Act to cement crypto regulations into law.